KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
KUALA LUMPUR (March 4): The FBM KLCI had today closed 6.77 points or 0.4% lower, after analysts said Malaysia's corporate earnings for 2018's fourth quarter (4Q18) were weak and disappointing.
At 5pm today, the KLCI closed at 1,693.99. The KLCI ended down despite gains across world stock markets amid signs the US and China were close to reaching a deal to end their trade war.
In Malaysia, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the KLCI was down mainly due to weaker corporate results announced recently. “News reports suggested that the [US-China trade war] is close to finding a resolution and if it is, it is definitely going to be good news for the market. Having said that, the Malaysian market has not really reacted, which is in a way a surprise,” said Wan.
Earlier today, CIMB Research analyst Ivy Ng Lee Fang wrote in a note that Malaysia's 4Q18 corporate earnings were disappointing, as 39% of companies under CIMB's coverage missed their earnings projections.
"The weak corporate earnings and huge impairments suggest an operating environment for businesses that is more challenging than anticipated. We lower our KLCI earnings growth to 5% for 2019F (vs 6% previously) but maintain our 6% earnings growth for 2020F. Corporate earnings delivery remains one of the key concerns for the Malaysian market," Ng said.
Across Bursa Malaysia today, 3.14 billion shares worth RM2.16 billion were traded. Top decliners included Nestle (M) Bhd and Petronas Dagangan Bhd.
China shares rose amid signs of a trade deal. The Shanghai Stock Exchange Composite closed up 1.12% while Hong Kong’s Hang Seng rose 0.51%. Elsewhere across Asia, Japan's Nikkei 225 climbed 1.02%.
Reuters reported that Asian shares started the week on the front foot on signs the US and China were close to striking a tariff deal to end their protracted trade war while the dollar eased as traders wagered Federal Reserve policy would remain accommodative. The Wall Street Journal reported on Sunday that Washington could lift most or all of its tariffs on Beijing while a summit between US President Donald Trump and his Chinese counterpart Xi Jinping to sign a final trade deal could happen later this month.
Source: The Edge
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